Buying a home in Mission Viejo or anywhere in Orange County? Escrow can feel like a black box between “offer accepted” and getting the keys. You want short, clear steps, no surprises, and a smooth close. In this guide, you’ll learn how escrow works in California, who does what, what to expect on timing and costs, and local tips to keep your closing on track. Let’s dive in.
What escrow is in California
Escrow is a neutral third party that holds funds and key documents and follows written instructions from you and the seller to close the sale. It protects both sides by making sure all agreed conditions are met before money moves and title transfers. In California, licensed escrow companies and title companies commonly provide these services, and the process follows state and county rules for title insurance and recording.
Think of escrow as the secure checkpoint between an accepted offer and homeownership. When everything in your contract is completed, escrow releases funds, records documents with the county, and the home becomes yours.
Who does what in escrow
Escrow officer
- Opens escrow, holds deposits, prepares settlement statements, and coordinates instructions.
- Requests seller loan payoffs, prepares deed and escrow instructions, and disburses funds at closing.
- Sends final documents for county recording.
Title company
- Searches the title for liens, easements, or other issues and helps clear them before close.
- Issues title insurance for you and your lender once title is clear.
Lender
- Orders the appraisal, underwrites your loan, and issues loan conditions.
- Provides a Closing Disclosure at least 3 business days before signing for financed purchases.
You, the buyer
- Schedule inspections fast, meet contingency deadlines, and provide documents to your lender.
- Secure homeowner’s insurance and bring your down payment and closing funds per escrow instructions.
Seller
- Provides disclosures, addresses agreed repairs or credits, signs the deed, and delivers clear title.
Real estate agents
- Coordinate timelines, inspections, contingency removals, and communication to keep everyone on schedule.
HOA or management company (if applicable)
- Supplies HOA documents, statements of dues, and other required information for your review.
Typical Orange County escrow timeline
Every transaction is different, but here’s a common sequence. Your purchase agreement sets the actual dates.
- Offer accepted and escrow opened (Day 0–1)
- Escrow is usually opened the same day or within 24–48 hours of acceptance.
- Earnest money deposit
- You deliver your initial deposit per the contract, often within 1–3 days. Escrow confirms receipt.
- Contingency period (about 10–21 days, often around 17)
- You book inspections, review seller disclosures, and your lender orders the appraisal.
- Appraisal timelines can vary, often 7–14 business days after ordering.
- Negotiations and repairs
- If inspections reveal issues, you and the seller may agree on repairs or credits. Escrow records amendments.
- Underwriting and final loan conditions (often 7–30+ days)
- Your lender works toward “clear to close” as you provide any final documents.
- Final walkthrough (24–72 hours before closing)
- You confirm the home’s condition and any agreed repairs.
- Signing and funding (closing day)
- Escrow sends final settlement statements and signing instructions. You sign and send funds per instructions.
- The lender funds the loan, and escrow records the deed and mortgage with the county.
- Post‑closing
- Escrow pays off the seller’s loans, disburses proceeds, finalizes recording, and your title policy is delivered.
Typical total escrow length: about 30-45 days for financed purchases. Cash or fully underwritten deals can close faster, sometimes in 7-21 days.
What you pay and when
Earnest money deposit
- Due per your contract, commonly within 1–3 days of acceptance. Escrow holds it in a trust account.
Down payment and closing costs
- Due at signing/closing. Escrow will provide a final settlement statement that shows your exact amount to bring.
Prorations and fees
- Property taxes, HOA dues, and certain utilities are prorated. Title insurance, recording fees, escrow fees, transfer taxes, and lender fees are listed on your closing statements. Who pays what depends on local custom and your contract.
How to pay safely
- Use only the written wiring instructions from escrow.
- Always verify wiring details by calling the escrow or title company using a phone number you already know or from their official website.
- Do not rely on phone numbers or links inside emails to verify wire instructions.
Orange County factors that affect timing
- HOA documents: Many Mission Viejo and nearby communities are in HOAs. Collecting CC&Rs, budgets, minutes, and disclosures can take several business days to two weeks. Build in time to review.
- Termite and pest: Wood-destroying pest reports and repairs are common. Scheduling and repair negotiations can add time.
- Natural hazard disclosures: These are standard in California and can prompt follow-up questions.
- Property taxes and supplemental bills: Ask escrow how taxes will be prorated and if a supplemental assessment is expected.
- Recording and keys: The county typically records soon after funding. Keys are released after confirmation of recording.
- Market conditions: In faster markets, sellers may push for shorter escrows, like 14–21 days. In slower markets, 30–45 days is common.
Common delays and how to avoid them
- Appraisal comes in low: Share strong comparable sales with your lender, consider a price adjustment, or add cash if appropriate.
- Underwriting conditions: Send requested documents quickly and completely.
- Title issues: Review the preliminary title report early and clear any liens or judgments promptly.
- HOA document delays: Request HOA packages immediately after opening escrow.
- Repairs or possession timing: Put clear timelines in writing and verify completion at the walkthrough.
- Wire fraud: Confirm wiring instructions by phone using a verified number and follow escrow’s security steps.
Buyer checklist to stay on track
- Send income and asset documents to your lender immediately after acceptance.
- Deliver your earnest money within the contract deadline and confirm escrow receipt.
- Book inspections within the first 72 hours and review reports right away.
- Order homeowner’s insurance early and share proof with your lender.
- Respond to escrow and title requests within 24–48 hours.
- Verify wiring instructions by phone using a known, verified number.
- Attend your final walkthrough and confirm agreed repairs.
- Avoid big financial changes until after funding.
Final walkthrough, signing, and keys
Your walkthrough usually happens 24–72 hours before closing to confirm the home’s condition. You’ll receive a Closing Disclosure at least 3 business days before signing on financed purchases, and escrow will send final settlement statements with the amount to bring. On closing day, you sign, your lender funds the loan, the county records the deed, and then you receive your keys per the contract instructions.
The bottom line
When you understand the sequence, deadlines, and roles, escrow becomes a clear, step-by-step path to your new home. Stay proactive with documents, book inspections early, review title and HOA items quickly, and verify wires by phone. If you want a local team to guide you through every step in Mission Viejo and across Orange County, the Lily Campbell Team is here to help.
FAQs
What is escrow in a California home purchase?
- Escrow is a neutral third party that holds funds and documents and follows written instructions from buyer and seller to close once all conditions are met.
How long does escrow take in Orange County?
- Most financed purchases close in about 30-45 days, while cash or fully underwritten offers can close faster, sometimes in 7-21 days, depending on your contract and lender.
When do I pay my earnest money deposit in Mission Viejo?
- Your contract sets the deadline, often within 1–3 days of acceptance. Escrow will confirm receipt and hold the funds in a trust account.
What happens during the contingency period in Anaheim–Santa Ana–Irvine?
- You complete inspections, the seller provides disclosures, the lender orders an appraisal, and you work through any repair or credit negotiations.
When do I get my Closing Disclosure and final figures?
- For financed deals, your lender must provide a Closing Disclosure at least 3 business days before signing. Escrow sends your final settlement statement before you sign.
How do I avoid wire fraud during closing?
- Only use written instructions from escrow and verify them by calling a known, verified phone number. Never trust wiring changes sent by email without phone confirmation.
When do I get keys after closing in Orange County?
- After the loan funds and the deed is recorded with the county, keys are released per your contract, often the same day as funding or the next business day.
